EtherFi’s ether.fan NFT Collection Disappears From OpenSea: Report

Key Points:

• EtherFi’s NFT collection, ether.fan, was removed from OpenSea due to concerns over financial activity subject to registration or licensing.
• OpenSea’s conservative stance on staked ETH raises concerns, as the SEC has not explicitly stated that it is subject to licensing and registration.
• Communication gaps may be due to OpenSea’s size, causing companies to become more risk-averse and stifling innovation and creativity.

EtherFi’s ether.fan NFT collection backed by staked ETH was removed from OpenSea due to financial activity concerns. Communication gaps may be due to OpenSea’s size.

In recent news, EtherFi, a decentralized liquid staking platform, has had issues with OpenSea, a popular NFT marketplace. The platform launched ether.fan, an NFT collection backed by staked ETH and focused on Ethereum decentralization. After successfully minting all 3k NFTs within a day with over 6200 ETH staked, all listings on OpenSea disappeared without warning.

Upon reaching out to OpenSea, EtherFi was informed that NFT collections that carry out any financial activities subject to registration or licensing are not allowed on the platform. This raises concerns about the conservative stance that OpenSea has taken, as even the SEC has not explicitly stated that staked ETH is subject to licensing and registration.

EtherFi had been in communication with OpenSea before launch to ensure compatibility, integrate their API for metadata, and ensure the collection looked right. Despite this, they received no indication that there would be any issues. The sudden and unexplained removal of all listings on OpenSea left EtherFi’s users confused and frustrated, with many reaching out for answers.

That being said I think there are many examples of companies in the crypto space that are willing to take a stand. Coinbase being the prime example. I think that’s the right approach. Otherwise what’s the point of the whole thing?

Mike Silagadze wrote in the letter to OpenSea

While EtherFi does not believe OpenSea acted maliciously, they do suggest that there may be communication gaps within the company due to its size. As companies grow larger, they often become more risk-averse and are effectively run by their legal and accounting teams. This can stifle innovation and creativity and alienate users who may feel like their needs and concerns are not being heard.

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